All else equal, as the price of oil falls, potential profits from producing oil ________ which ________ oil companies to look for additional sources of oil
A) increase; encourages
B) increase; discourages
C) decrease; encourages
D) decrease; discourages
D
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Mika's Manicures leases a space in the local mall for $4,500 a month. For this business, this expense would be considered an:
A. implicit cost of $4,500. B. explicit cost of $4,500. C. explicit cost of $0. D. This is neither an implicit or explicit cost; it is a fixed cost of $4,500.
Expenditures that are directly included in GDP accounts include
a. the value of housework done by householders b. the selling of illegal drugs c. playing tennis with friends on a Sunday afternoon d. casual labor in sweatshops that is unreported e. going to a Dodgers-Expos game on your day off
A rational decision maker takes an action if and only if the marginal benefit exceeds the marginal cost
a. True b. False Indicate whether the statement is true or false
For the economy to be in equilibrium, government purchases plus ________ must equal saving plus ________.
A. tax revenue; investment B. consumption; investment C. tax revenue; consumption D. investment; tax revenue